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CHAPTER5.THEUNBUILTENVIRONMENT:AGRICULTUREANDFORESTRY39 For ECA’s productive environment—farms, commercially exploited forests, and fisheries— climatechangeisalreadyhappening.Moldova’sdroughtͲstrickenagriculturalsectorandCentral Europe’s forest fires during the 2003 heat wave provide a harbinger of the challenges the farmingandforestrysectorswillfaceoverthecomingyears(Finketal.2004). However, the impact of climate change will vary across ECA countries, with some areas and sectors projected to experience significant new stresses, while others might see a positive impact. There are also variations in when and how directly different areas and sectors must copewithclimatechangeimpacts.Theincreasedfrequencyofheatstress,drought,andflooding caused by climate change threaten to reduce crop yields and livestock productivity in many areas.Shorterandlessharshwintersmayresultinpotentialproductivitygainsinothers.Inthe forestry sector, increased risks of fires and pest outbreaks will negatively affect the health of forests(Easterlingetal.2007). Theagricultureandforestrysectorsalsocanhelpmitigatefurtherclimatechangeandmayoffer opportunities for tapping into carbon finance. Forests, which play a critical role in absorbing carbon dioxide emissions, are cut in order to clear land for farming. Globally, agricultural productionanddeforestationaccountforupto30percentofgreenhousegasemissions,second only to the power sector (IPCC 2007c). These sectors therefore offer opportunities for carbon sequestration, such as through afforestation or minimum tillage agriculture. But mitigation strategies do not protect societies against the climate change impacts already in evidence, or thoseinthepipelineasaresultofpastgreenhousegasemissions. Adaptation is essential to protect and enhance rural livelihoods in ECA. But adaptation is also criticaltosupplyglobalfoodmarketsasglobalpopulationsoars,andasyieldsinmanycountries declinefromthedamagingphysicalimpactsofclimatechange.Farms,forestsandfisheriesplay a crucial role in rural poverty reduction, employment, economic growth, and food security. Indeed, the ECA countries that stand to benefit from moderate temperature increases (+1 to +3ºCintheglobalannualaverage)willplayavitalroleinmeetingtheworld’sgrowingdemand forfood. But the benefits and risks of climate change are far outweighed by the costs of the region’s comparativeinefficiencyandlowproductivity(OlesenandBindi2002).Therecentcrisisinglobal food prices revealed the inability of a number of ECA countries to respond to the changed environment,raisingconcernsaboutskewedincentivesandtheregion’sabilitytoadapttothe challenging shifts projected under climate change scenarios. To change this, ECA’s leadership andfarmingcommunitymustbereadytoaddresstheproductivitygapwithWesternEuropein bothagricultureandforestry. Allgovernmentsintheregionwillneedstrategiesthatallowtheircountriestotakeadvantageof potential gains from climate change, as well as minimize risks and threatened losses. But positive outcomes won’t arrive automatically. A country or subͲregion may be positioned to expandfarmoutputsundercertainclimatechangescenarios,butifthephysicalinfrastructureis failing, or if institutional or market barriers are a constraint, the benefits of increased farm outputswon’tmaterialize. 39 Thischapterisbasedon“AdaptationtoClimateChangeinEuropeandCentralAsia’sAgriculture”byWilliamSutton, RachelBlock,andJitendraSrivastava,abackgroundpapercommissionedforthisreport. 53 Despite variations across countries, each one will need to remove barriers to efficiency and sustainability. In Central Asia, the unforgiving topography and hydrology will complicate adaptation strategies, even if institutions are functioning at optimum effectiveness. Southeast Europe, home to some of the most productive land in the region, is projected to suffer from drought,heatwaves,andmorefrequentforestfires.Inthenorth,therearepotentialbenefits fromclimatechange,butthesewillonlyberealizedifcountriesadjustinstitutionalframeworks to support new patterns of production. Even then, other barriers will persist, including in northern Russia’s poorsoil’s, the lack of public services and infrastructure, and possible social dislocationsandlocalenvironmentaldamage(DroninandKirilenko2008). In sum, countries should be ready to take advantage of potential benefits or to minimize threatened losses through assessment and wellͲstructured adaptation programs. For those linkedtothefarmandforestrysectors,theneedisurgentsinceclimatechangewillaffectthem immediately and most directly. Countries will have to strengthen the capacity of institutions involved in the rural economy and to improve public services, particularly those that impart skillsandunderstandingtofarmersandforesters.Finally,infrastructuresthataffectproduction andinstitutionsthatsupportmarketswillrequiremodernization. ThechapterreviewstheimpactsofclimatechangeonfarmingandforestryinECA,highlighting the region’s inherent sensitivity and limited adaptive capacity, and what this implies for both winning and losing regions and sectors. It concludes with recommendations about possible adaptation measures. First, however, we discuss the continued importance of agriculture in manycountriesintheregion—particularlyforpovertyconcerns. ClimateimpactswillexacerbateECA’spersistentproblemofruralpoverty Despite the perception of ECA as an urbanized region, many livelihoods are still linked to the productivity of agriculture, even if those involved do not work directly on farms (Alam et al. 2005). Agriculture is a particularly important part of GDP in Central Asia, the South Caucasus, andSoutheasternEurope(table5.1). AcrossECA,roughlyoneͲthirdtooneͲhalfofthepopulationlivesinruralareaswiththefigure approaching twoͲthirds in Central Asia. Even in Kazakhstan and Central and Eastern Europe, a significantshareofthepopulationremainsrural,despitethefactthatagricultureaccountsfora smaller portion of the economy. And, in much of ECA, half or more of the poor live in rural areas, with threeͲfourths of extremely poor people in Central Asia living in the countryside. Thus, any forwardͲlooking poverty strategy must take into account new stresses felt in rural areasasaconsequenceofglobalclimatechange. Forestryandforests,thoughnotassignificanteconomicallyasagriculture,remainimportantfor rurallivelihoodsboththroughdirectemploymentandthroughecosystemservices(suchasthe provisionofwoodandfood,orprotectionagainsterosionandflood)Forestryaccountsforonly about0.1percentofGDPinmuchofCentralAsiaandtheCaucasus;butoutsidemarketsystems, forest resources may be significant to rural communities, particularly with respect to the fuelwood. The market importance of forestry is somewhat higher in Central, Eastern, and SoutheasternEurope.40 40 ForestryasashareofGDPis2.3%inBelarus,0.8%inRussia,1.2%inUkraine,2.2%inBosniaͲHerzegovina,3.1%in SerbiaandMontenegro,andabout0.8%inBulgaria,Macedonia,andTurkey(allfigures2000;Suttonetal.2008). 54 TABLE5.1AGRICULTUREMATTERS:POVERTYANDTHERURALECONOMYINECA Region Agricult. Rural Ruralextreme asshare pop% povertyrate% ofGDP% Ruralpoverty rate% Ofextremely poor,sharein ruralareas% Ofpoor, sharein ruralareas% Southeastern 12.3 35.4 20withTurkey, 61withTurkey, 46 45 Europe 9without 44without Central&Eastern 8.7 36.1 10 44 54 48 Europe Baltics 5.3 35.2 3 33 39 42 Russia 5.6 27.1 14 53 42 34 SouthCaucasus 12.0 45.9 30 80 49 48 Kazakhstan 6.7 42.2 31 79 64 52 CentralAsia 27.0 64.1 62 94 73 69 NotesonPoverty:Extremepovertyline$2.15orlessperpersonperday.Povertyline$4.30perperson per day. Both poverty lines using purchasingͲpower parity dollars. 2002, 2003 or 2004 if available. For rural poverty, Central Europe is Ukraine, Romania, Moldova; Central Asia is Kyrgyzstan, Tajikistan, Uzbekistan; Southeastern Europe is Bulgaria, Serbia, Montenegro, Albania, FYR Macedonia, BosniaͲ Herzegovina,+/ͲTurkey.NotesonAgricultureandPopulation:2006or2005. Sources:WorldDevelopmentIndicators(WDI)andAlametal.(2005). RuralpovertyratesinECAaresignificantlyhigherthannationalaverages,andtheshareofrural peopleinpovertyrangesfromalowofoneͲthirdinRussiatoastaggering94percentinCentral Asia.Intherestoftheregionabouthalfofthepoorarefoundinruralareas.Thus,mostECA countries other than Russia have a poverty profile heavily influenced by conditions in rural areas,particularlywithrespecttoagriculture. Agricultureisuniquelyeffectiveinreducingpovertyinallcountrytypes.41Theinverse,ofcourse, is that setbacks in agriculture—whether losses or missed opportunities—will be disproportionately damaging to the rural poor. Thus, even if climate change has only a small impactontheoveralleconomy,itcouldhaveaprofoundeffectontheportionofthepopulation livingbelowthepovertyline,orthepopulationofaparticulardistrictorlocality.Moreover,at the local or household level, the impact could go beyond income to affect human health and nutrition(Randolphetal.2007). Livestock activities are important to many vulnerable groups in the ECA region and may be undergoingstructuralshiftsasthedemandformeat,eggs,anddairyproductsincreasesinAsia’s fastͲgrowing economies. The delicate balance of grain allocation as a staple food or as animal feedmaybecomemoredifficulttomaintaininthecontextofchangingglobaldemand.Shocks fromclimatechangecouldaddtoanalreadyuncertainmixoffactors,potentiallyexacerbating thecurrentglobalfoodandfeedcrisis(SirohiandMichaelowa2007).Untanglingtheinterplayof shiftingglobaldemand,climatechange,andpatternsinlivestockͲrelatedlanduseandteasing outthepolicyimplicationsisacontinuingendeavorworldwide. ModelspredictthattherewillbewinnersandlosersinECA Beyond the undisputed conclusion that climate change will add to the vulnerability of most if notallruralpopulationsalreadylivinginpoverty,theeffectsofchangingweatherpatternson ECA’s agriculture and forestry are hugely varied. In addition, projections build on uncertain 41 Thispoint,whichwashighlightedintheWorldDevelopmentReport2008onagriculture,iswellillustratedbythe factthatGDPgrowthoriginatingintheagriculturalsectorreducespovertytwiceasmuchasgrowthdrivenbyother sectors(WorldBank2007). 55 factors, including the ways that private interests or institutions might respond to the new opportunitiesandrisksthatcomewithwarmer,wetter,ordrierweather. Adaptationwillbeessentialnotonlytoprotectthepoorestbutalsotorealizepotentialbenefits. However, adaptation strategies carry costs and face barriers that must be factored into any calculationaboutnetgainsinECA.Andthescopeofopportunitiesispartlyafunctionofworld foodmarkets,whicharesubjecttofluctuationanduncertainty. Still,climateandagroeconomicinformation,whilefarfromcomprehensive,providessufficient datatoillustratethescopeofclimateshiftsalreadyunderway,alongwithsomefuturechanges andtheirpotentialimpacts. Insightsfromobservedclimatechangesandimpacts Changes in climate and their impacts on agricultural systems and rural economies are already evident throughout ECA. The growing season has lengthened in locations stretching from GermanytoEuropeanRussia(Maracchietal.2005).Chapter2notedthatextremeeventshave occurred with greater frequency and intensity in Europe, most recently in the 2003 summer heatwaveovermuchofthecontinent,andmoreintensefloodinginCentralandSoutheastern Europe.AdeclineinprecipitationalongthenortheasterncoastoftheMediterraneanhascaused significant droughtͲrelated damages in the agricultural economies of Southeastern Europe (Alcamoetal.2007,p545).DroughtͲinducedeconomiclossesinallsectorshavebeencalculated for the region, and are in some cases large.42 Successive weather extremes add to stresses: Moldova’sresiliencewasalreadyweakenedbypaststormsanddroughtswhenamajordrought arrivedin2007,bringinggreatereconomicdisruption. In Central Asia, Kazakhstan, Asian Russia, and the Arctic, twentieth century increases in temperaturehavesurpassedtheworldwidewarmingaverage,risingbyasmuchas+3ºC(Cruzet al.2007p475;Kattsov2007p8).Thefrequencyandintensityofextremeeventshasincreased, including heat waves, extreme cold days and winter storms, heavy rains and floods, and droughts(Alcamoetal.2007;Cruzetal.2007). In the mountainous South Caucasus, observed changes have exhibited geographic variation in bothdirectionandmagnitude;sowhileaveragetemperaturehasincreasedslightlyandaverage precipitation declined slightly, localized impacts have been larger (Hovsepyan and Melkonyan 2007).SeveredroughtshavebecomeincreasinglycommonintheNorthandSouthCaucasusand Central Asia, worsened by poor land management, soil degradation, and reduced rain or river runoff(WorldBank2005). Impacts:theagronomicview ECAasawhole,aswellasindividualECAcountries,isuniqueinencompassingbothwarm,dry areaswhereagricultureandforestsareprojectedtoexperiencesignificantdamagefromclimate change, and colder areas where agriculture and forestry could benefit from warmer temperaturesandincreasedprecipitation(seetable5.2forasummaryofchangesinagricultural potential;detailedregionalinformationonimpactsisinbox5.1). 42 Albania(1989–1991:$25m),Macedonia(1993:$10m),Moldova(2000:$170m,2007:$1billion),Romania(2000: $500m),Croatia(2003:$330m),BosniaͲHerzegovina(2003:$410m)(UNISDR/WorldBank2007;WMO2007). 56 SmallͲholderfarmsinAlbaniathatdependonirrigationmaybehardhitbydroughtsandheat waves,whileinpartsofPoland,alongergrowingseasonandwarmerwintersmayallowgreater cropdiversityandincreasedproductivity. LargecountriessuchasKazakhstanincorporatevariousclimatezones,andwillbehometoboth winnersandlosersasclimatechangeimpactsplayout.Areasprojectedtoseeincreasingrainfall couldseeexpandingopportunitiesforrainͲfed,highͲyieldingwinterwheat,whileotherpartsof thecountryfacereducedwateravailability,sporadicdrought,andlowercottonyields. Ideally, countries could embark on a smooth adaptation (as illustrated by the arrows in table 5.2), with cereal cultivation shifting northward in Russia and Kazakhstan, and longer growing seasons allowing for increased diversification into highͲyield or highͲvalue crops in the cool, temperate areas of Central Europe and European Russia. Of course, it takes planning, investment, and effective knowledge services to take advantage of climateͲinduced opportunities. TABLE5.2CROPPOTENTIALINTHEECAREGIONTODAYANDPOSSIBLESHIFTSBY2100 General climate class Average temperature ofwarmest months(°C) CropͲ growing period (days) Croppotential Verycold 8.5–11 <90 Quickmaturinggreenroot vegetables(lettuce& radishes) PartsofArctic Region,Siberia& FarEast(Russia) Cold 10.5–16 <100 Earlyvarietiesofvegetables (cabbage,spinach,turnips), earlyvarietiesofbarley,oats, buckwheat,flax,hardiestlocal varietiesofapples&pears Northernpartsof Urals,Western Siberia&FarEast Moderately cold 15–20 100–150 Winterwheat,springwheat, rye,barley,oats,legumes, flax,potatoes,cabbage,beets, locallyadaptedwinterͲhardy varietiesofapples,pears, plums. Baltics,northern partsofCentral Russia&Volga Region&Southern Siberia,Northern Kazakhstan Moderate 18–25 150–180 Grain,corn,sunflower, soybeans,rice,wheat, melons,earlycotton, vegetables,walnuts,peaches, apricots,apples,grapes, cherries,plums. Ukraine,southern partsofCentral Russia&Volga Region,Northern Caucasus,Central Europe Warm >25 >180 Cotton,citrus,figs,grapes, olive,wheat,corn,rice, vegetablesduringwinter, subtropicalperennials(tea), nutsandavarietyoffruit crops CentralAsia, Caucasus, Southeastern Europe,Turkey, Southern Kazakhstan ECAregions ECA regions in2100 in2009 Compare to South Mediterranean & Middle East in 2009 Source:Suttonetal2008. 57 BOX5.1ESTIMATEDAGRONOMICIMPACTSOFCLIMATECHANGEINECATO2050—ASUMMARY SOUTHEASTERNEUROPEincludingTurkey Decreasedprecipitationinallseasons,yetmorestorms,floods•Soilerosionfromwind,storms,andfloods*•increasedevapotranspiration,soil salinization•increasedirrigationdemand,stressonwatersupply•especiallyseverewaterstressinsouthernTurkey. Higher average temperature, very hot summers, heat waves, and droughts • Faster maturation, shorter development period, with water shortageandheatstress,grainsterility,loweryieldsofmanycereals,oilseeds,andpulses(i.e.,determinantcrops)*•decreasedyieldorquality of onions,** coolͲweather vegetables* • longer season for warmͲweather vegetables • possible shifts to higher altitude of some crops (esp. mountainousTurkey)•increasedvariabilityofgrapequality,quantity,andvulnerabilitytopests,butpotentialbenefitfromCO2fertilization• , expansion of droughtͲtolerant olive, citrus, fig* *** • but tree crops highly vulnerable to storms, pests** • winter survival and subsequent † proliferationofpests. , Increasedvariabilityinyieldsofcereals,othercrops.* *** **,*** Livestock • Heat stress and both indigenous and nonͲindigenous disease in livestock threaten milk and meat production. Heat, water scarcitydecreaseforageproductionleadingtoshortageinlatesummer.*** CENTRAL&EASTERNEUROPE Rightonlinebetweennorth(wetter,milderwinter)andsouth(drier,hotter),sonotyetclearifclimateandthusimpactswillbesimilartothe †† neighbors to the north or to the south. Potential yield increases projected by models mostly shown in Alps, Carpathians, where significant agriculture not actually feasible. Disagreement among sources, including range from benefits to large losses around Black Sea (E. Romania, Moldova,S.Ukraine—hotanddry),littleagreementforallofUkraine.**,†† Increased storms, but ambiguous magnitude and direction of precipitation change • Tree crops vulnerable to storms • even if no change in regionoverall,possibleyielddeclineiftoowetinthenorth(seeBaltics)orevenslightlydrierinthesouth(seeSoutheasternEurope). Equalamountofwarminginwinterandsummer•Fastermaturation,shorterdevelopmentperiod,mayloweryieldofmanycereals,oilseeds, andpulses(i.e.,determinantcrops)*•potentialfornorthwardexpansionofwarmweathercropslikeoilseeds,pulses,vegetables**•potatoes morevariable,possiblylimitedbylowsoilmoisture*•wintersurvivalandsubsequentproliferationofpests•toowarm,dryforrainͲfedcereals inparts,butsuitableformoretreecrops,includingfruit,nutsandmorenaturalpasturebiomassforanimals;possibleincreaseinareaofwinter wheatandrye. BALTICS Increasedprecipitation,floods•Riskofsoilerosion•excesssoilmoisturelimitsdayssuitableformachineryuse*•springplantingdisruptedby April/Mayrains•harvestdisrupted,damagefromwaterͲlogging,ormoldingofharvestedgrainifexcessraininautumn.* Milderwintersandhigheraveragetemperature•Fastermaturation,shortergrainͲfillingperiod,loweryieldofwinterwheat,*butnowpossible tousehigheryieldingspringͲwheat•potentialfornorthwardexpansionofwarmͲweathercropslikeoilseeds,pulses,vegetables*•eithernoor favorable changes in potato, sugarͲbeet yields, but increased variability* • winter survival and subsequent proliferation of pests* • more varietiesofapples,plums,pears. †††,‡ Increasedvariabilityinyieldsofcereals,othercrops. Potentialyieldgainsrequiremorefertilizerandpesticides.**Noconsensusonstronglypositivenorstronglynegativeyieldprojectionsoverall; generallysmall,positiveforinitialmoderatewarming,becomingunpredictableandpossiblynegativeasmeantemperatureincreasesfurther.†,†† Livestock • Increased survival, reduced winter feed requirements for livestock.** Forage, grassland may benefit but only with proper drainage.†,†† RUSSIA:Baltic&WesternArctic Markedincreaseofprecipitation,especiallyinwinter,andofsurfacewater•Riskofsoilerosionandnutrientleachingfromexcessrain•excess soilmoisturelimitsdayssuitableformachineryuse*•springplantingdisruptedbyApril/Mayrains•harvestdisrupted,damagefromwaterͲ logging,ormoldingofharvestedgrainifexcessraininautumn.* Muchmilderwintersandhigheraveragetemperature•Potentialfornorthwardexpansionoftemperatecereals,vegetables,pulsesinBaltic,and ‡ ofhardiestcropsintouncultivatedland**•longergrowingseason •potatoyieldsmorevariable,thoughwithaverageincrease.** Largechange,especiallyinArctic,andthuslargeuncertainty. ExpansionofleafͲbearingandstepperangeintocurrenttundra,taiga.**Changeincompositionofforests,andpossibleincreaseinvaluefor timberproduction. Livestock • Increased survival, reduced winter feed requirements for livestock.** Forage, grassland may benefit but only with proper drainage.**,† RUSSIA:Central&Volga Smallincreaseofprecipitation,mostlyinwinter,andofsurfacewater•Givensmallchange,uncleariftherewillbesufficientmoisture,given temperatureincreasesandfasterevaporation,insomemonths•extremelowrunoffeventsthreatenoutput†duetodrought. Much milder winters and hotter summers, higher average temperature • Potential for northward expansion of winter cereals and crops like oilseeds,pulses,vegetables,aswellasfruitcropscurrentlygrowninNCaucasus**•longergrowingseason•wintersurvivalandsubsequent † proliferationofpests. Increasedvariabilityinyieldsofcereals,othercrops.†††,‡ Livestock•Increasedsurvivalandreducedfeedrequirementsforlivestockinwinter.**Possibleheatstress,dryingupofgrasslandinsummer. **,†,‡ Possibleexpansion, intensification of indigenous and nonͲindigenous disease.† In southernpart, productivity of grassland to decline, will needtoshiftnorthward.Lowergrassproduction,heatstress,drysummersleadtoreducedmilk,vulnerabilitytodisease.† (continued) 58 RUSSIA:NorthCaucasus Decreasedprecipitationinallseasons,yetmorestorms,floods,andsoilerosion. Higheraveragetemperature,veryhotsummers,heatwaves,anddroughts. Very similar changes, on average, to South Caucasus, though even higher heat wave risk. See agronomic impacts information for South Caucasus.TheareawiththegreatestpotentialdamageswithinRussia,givencurrentagriculturalimportanceandnatureofprojectedchanges. Plantandanimaldiseasestobecomemorerecurrent. RUSSIA:Urals&W.Siberia,S.Siberia,E.Siberia&FarEast Markedincreaseofprecipitation,especiallyinwinter,andofsurfacewater,highfloodrisk•Excessprecipitationmaylimitexpansionofcereals otherwisepossiblefromtemperatureincreasealone•riskofsoilerosion•excesssoilmoisturelimitsdayssuitableformachineryuse*•spring plantingdisruptedbyApril/Mayrains•harvestdisrupted,damagefromwaterͲlogging,ormoldingofharvestedgrainifexcessraininautumn.* Muchmilderwintersandhigheraveragetemperature•ShiftofagroͲecologicalzonesonadiagonalgradienttowardsthenortheast,socurrently forestedoruncultivatedlandwarmenoughforwintercereals,shortseasonvegetables,•expansionofcerealswouldentailmajorchangesin landuseovertime. Livestock • Increased survival, reduced winter feed requirements for livestock.** Forage, grassland may benefit but only with proper **,† drainage. ExpansionofleafͲbearingandstepperangeintocurrenttundra,taiga.**Changeincompositionofforests,andpossibleincreaseinvaluefor timberproduction. SouthSiberiahasadifferentclimaticandagriculturalbaseline,thoughprojectedclimatechangesaresimilartotherestofAsianRussia.See impactsinKazakhstanformorerelevantagronomicimpacts. SOUTHCAUCASUS Decreaseinsurfacewater;droughtsandfloods;declineinspringandsummerprecipitation,smallincreaseonseacoastsinwinter•Highriskof summerdroughts•salinization,desertification,andsoildegradation‡‡•yielddeclinesforcereals,vegetables,potatoesfromwatershortageand excessheatinmanyareas•widespreadcropfailuresduringdroughts•strainonwatersupplyforirrigatedagriculture. ‡‡Especiallyhotter in summer, also milder winters • Despite milder winters, more cropͲdestroying frosts (tree crops, fruits) because of absence of heatͲretaining ‡‡ ‡‡ humidity • longer growing season may allow multiple harvests • expanded area for cultivation of warmͲweather tree crops (figs, nuts) in plains,andexpandedareaforvegetables(tomato,peppers)andcoolͲweathertreecrops(apples)athighaltitudes,butlimitedbysteepnessand riskofincreasederosion‡‡•potentialyieldincreaseandgeographicexpansionforhotͲweatherperennialslikegrapevine,olive,citrus,butwith riskofhighvariability‡‡,**•treecropsvulnerabletostorms,pests**•wintersurvivalandsubsequentproliferationofpests.† Livestock•Increasedheatstressanddisease,butlessstressfromcoldinwinter.**Outcomesforforage,grasslandnotclear.‡‡ KAZAKHSTAN Morerainfall,surfacewateryearͲroundinnorth,withverydrysummersinsouth•DespiteCO2fertilization,increasedheatandwatershortage † causedeclineincotton,rice,fodder,vegetableandfruitcropproductioninirrigatedsouth •potentialexpansionofgrazinglandnorthwards and in formerly virgin marginal lands, that were later ploughed for wheat cultivation. Note, greater water demand for rice production with † highertemperatures. Muchwarmerthroughoutyear,slightlymoreinsummer•Potentialincreaseincereal,legumeandoilcropproductionincooler,wetternorth• increasedfodderproduction•increasedwaterdemandofplantsanddryingofsoilsinwarmermonthsbecauseofhighertemperatures,causing droughtriskandwaterscarcitytopersistorworsen. Livestock • Initial warming good for livestock, provided sufficient water availability, but after first few degrees, increased heat stress and disease.† CENTRALASIA Unchanged or increased winter rainfall, decrease in rainfall and surface water in spring, summer, fall, with droughts • Major stress on water † resourcesforirrigation•declineincerealyieldfromwatershortagefromspringtofall,andfromthermalstress •drought,desertification,soil erosion, salinization • widespread crop failures during droughts • increased suitability for droughtͲresistant tree crops. Note, greater water demandforriceproductionwithhighertemperatures.† † Hottersummer,milderwinter•Greaterwaterdemandforriceproductionwithhighertemperatures •despiteCO2fertilization,increasedheat andsignificantwatershortagecausedeclineincottonyields.† Livestock•Marginalgrasslandsatriskforaridization,desertification.Heatstressreducesmilkproduction. Sources: Olesen and Bindi 2002;* Maracchi et al. 2005;** Branczik 2007;*** IPCC 2007c;† European Commission 2007;†† Alexandrov 1997;††† Sirotenko,Abashina,andPavlova1997;‡HovsepyanandMelkonyan2007.‡‡ 59 Further south, hotter, drier summers pose new risks, with more frequent, intense droughts in Southeastern Europe and Turkey, the North and South Caucasus, and Central Asia. The net effectcouldwellbenewlimitsonoutput,andfargreatervolatilityincropyieldsfromyearto year.Infact,asillustratedinthelastrowoftable5.2,themodelforagricultureinthealready warm,dryareasofECAeventuallywillbedrawnlessfromlocalexperiencethanfromcurrent practices in the Middle East and North Africa (MENA). Today’s management challenges and conflictsoverwaterinMENAofferasoberingpictureofwhatsomeinECAmustadaptto. Theprojectedincreaseinweatherextremespresentschallengesforagricultureacrossallparts ofECA.InundatingrainsinRussiaandtheBalticsmayinterruptsowingandharvestingofcereals. Storms in Central and Southeastern Europe could destroy tree crops. Alternating drought and intenserainandsnowmeltcouldcauseerosionandlandslidesinthedenselycultivatedslopesof the Caucasus. Drought combined with the scarcity of irrigation water could accelerate soil degradation;andasvegetationwithers,localclimatefeedbackeffectsresultinlessprecipitation andworseningdrought.ClimatechangewillworsenthislongͲtermspiralofintensifyingaridityin CentralAsiaandtheSouthernCaucasus(Easterling etal.2007; Cruzetal.2007;Alcamoetal. 2007; Olesen and Bindi 2002; Maracchi, Sirotenko, and Bindi 2005; Branczik et al. 2007; HovsepyanandMelkonyan2007). Livestock production, also sensitive to weather patterns, could benefit in the north from increasedforageproduction,lowerfeedrequirements,andlessthreatofextremecold.Butin the warmer, drier areas changing rainfall patterns and extreme heat will affect livestock both directly—throughheatstress,lackofdrinkingwater,andchangedreproductivepatterns—and indirectly—through reduced forage and feed yields. The unwelcome arrival of infectious diseases,suchasbrucellosisorrabies,becauseofwarmertemperatures,wouldaddtostresses onherds. Livestock production can add to the climate change problem—through overgrazing and local climatefeedbackeffectsand,globally,throughmethaneemissions.Alltold,livestockactivities now contribute 80 percent of all agricultural greenhouse gas emissions (FAO 2006a). If producersrespondtodeclinesintheproductivityoflivestockbyenlargingtheirherds,theresult could be overgrazing, pasture degradation, and erosion of watershed catchments, causing devastatinglocalclimatefeedbackeffects(Kokorin2008).Thisscenarioofgrasslandsbecoming dryandbarrenisalreadyaconcerninwaterͲscarceCentralAsia,wheremanypeopledependon traditionalagroͲpastoralgrazingsystems. ECA’sforestsfacetreelossanddegradationfromextremeeventsandfromthecombinationof earlier snowmelt and hot, dry summers. Regional droughts and shifting wind patterns have alreadyincreasedthefrequencyandintensityofwildfires,notablyinSerbia,BosniaandCroatia in 2007, and Russia, where some 20 million hectares were lost to fires in 2003 alone. Strong winds,whichareprojectedtoincreaseasclimatechanges,cannotonlyspreadwildfiresbutalso spark the initial conflagration. Many suspect that strong winds near electrical wires were the culpritinthe2008firesintheTurkishprovinceofAntalya,where,inadditiontotakinglifeand destroyingtrees,thefiresdevastatedvaststretchesofproductivefarmlands. Achangingclimatecanredistributetreespecies,withwarmingcausingshiftstohigherlatitudes. The new patterns can also provoke outbreaks of insect infestations, as seen in the northern marchofdamagingpestsinborealforestsaroundtheworld(Easterlingetal.2007). 60 Similarly,achangedclimatesetsthestageforaninvasionofnonͲnative,harmfulplantspecies intoalreadydisruptedforestecosystems.Plantandpestspecieswillmovetohigheraltitudesin responsetoglobalwarming,atrendalreadyobservedintheexpandednorthwardrangeofbirch (Betulapubescens)intothetundraofSwedenoverthelasthalfofthetwentiethcentury. Impacts:theeconomicmodels Themodelestimates The economic effects of climate change on agriculture include direct yield impacts, which are the most easily estimated, as well as ripple effects across sectors and markets. We take the initial shock to potential crop yields as our starting point before subsequently considering marketforcesandfeedbacks,withparticularfocusontheinternationalfoodmarket.Basedon ouranalysisandestimatesavailableinglobalsynthesisstudies,primarilyCline(2007),whichare discussedfurtherinbox5.2,wehavealsoattemptedtoidentifypotentialwinnersandlosersin agriculturaloutputmarkets. BOX5.2ECONOMICAGRICULTURALIMPACTMODELSANDTHEIRLIMITATIONS The Cline estimates have been chosen here because they incorporate both main types of models, agronomicandRicardian,toarriveatconsensusestimates.(Forfurtherdiscussion,seeSuttonetal.2008.) However,thereareanumberofreasonstointerprettheresultswithcaution.Fivemajorlimitationsofthe estimates are (i) the lack of ECAͲspecific data, particularly important in mountainous and waterͲ constrained areas, in the initial design of the models; (ii) the reliance on averages to determine yields, wheninfactvariability,extremes,andnonͲlineartippingpointsmaybeequallyormoreimportant;(iii) oversimplificationofhydrology,andthusfailuretoconsiderrealisticconstraintsonwateravailability;(iv) a partial equilibrium view of resource allocation and production, i.e., omission of tradeͲoffs in the allocationoflandandwaterandofmarketfeedbackeffects;(v)thelackofconsiderationofthebarriersto adaptation,fromthegeographic,technological,andinfrastructuraltotheinstitutional,informational,and financial; (vi) highly optimistic assumptions about a positive supply response from ECA in the face of global shifts in food production potential, demand, and prices, which would in fact require currently absentcomplementaryinstitutionsandinvestments. The results show that there is the potential for the following changes in the agricultural economiesoftheregion: x NetlossesinSoutheasternEuropeandTurkey,theNorthandSouthCaucasus,andCentral Asia; x GainsintheBalticsandSiberia,Urals,FarEast,andBaltic&WesternArcticregionsof Russia; x MixedoruncertainoutcomesinCentralandEasternEurope,Kazakhstan,andtheCentral andVolgaregionsofRussia(table5.3). The subͲregional summaries are not meant to be definitive because uncertainties remain, but they can help identify potential conditions that farmers and policymakers can shape and respondtobasedoncurrentclimatechangeknowledge.Whilepreciseimpactscan’tbegauged, a pattern does emerge in which southern areas, already waterͲstressed, will be vulnerable to theprojectedhighertemperaturesandlowerprecipitation,whilehigherlatitudescouldbenefit from improved conditions for agriculture. (The economic impact models for forests are less developed.) 61 TABLE5.3ECA’SPOTENTIALWINNERSANDLOSERSINAGRICULTUREFROMCLIMATECHANGE Region Basedonannex5.1, Cline,authors’analysis Yieldimpacts2080s withoutCO2 fertilization(%) Yieldimpacts2080s withCO2 fertilization43(%) SouthCaucasus Likelyloser –17 –5 CentralAsia Likelyloser –9 +4.6 SoutheasternEurope&Turkey Likelyloser Eur:–8.6Turk:–16.2 Eur:+5.1Turk:–3.6 Central&EasternEurope Mixed/indeterminate –5 +8.5 Kazakhstan Mixed/indeterminate +11.4 +28.1 Russia:NorthCaucasus Likelyloser Russia:CentralandVolga Mixed/indeterminate Russia:Baltics Potentialwinner Russia:WestArctic Potentialwinner Russia:SouthSiberia Potentialwinner –7.7 +6.2 Russia:Urals&W.Sib,E.Sib& FarEast Potentialwinner Baltics Potentialwinner –5to+5 +9.5to+27.9 Source:Suttonetal.2008.Notes:RelativetotheotherpartsofECA,Kazakhstan’syieldincreasesare probablyanoverestimate.Moredetailsareinbox5.2. Interpretationandcaveats At first glance, the impact on ECA’s farm economy appears manageable, particularly when comparedtoSouthAsiaortheSahel,whereyieldsareprojectedtodecreasebymorethan25 percent. Because the models all have weaknesses, and because country level economic projectionsarerudimentary,decisionͲmakersshouldseetheprojectionsasindicative.Todate, verylittleanalyticalworkhasbeendoneatthecountrylevelinECAtoestimatetheeconomic costs and benefits of climate change impacts and agricultural adaptation, and even less to addresstheintraͲcountrydistributionalimplicationsofclimatechange. The estimates are limited in the sense that they can only include trends; but not all climate changesfollowasimpletrajectory.AkeyexampleofclimatechangecomplexityistheSyrDarya andAmuDaryaRivers,whichdrawonmountainsnowmeltinthespringandearlysummerand glacialmeltinlatesummer,andwhichprovidemuchofthewaterforCentralAsianfarmsbefore eventuallydrainingintotheAralSeainwesternKazakhstanandUzbekistan.Thecrucialglaciers oftheTienShanMountainsofNorthernChinaandKyrgyzstan,acriticalsourceofwater,have declined sharply in the past 50 years, with an accelerated retreat in the past two decades (Niedereretal.2008). 43 Carbon fertilization refers to an expected increase in yield of many crops in an environment of higher CO2 concentrations,becausei)CO2isaninputintophotosynthesis,andmoreCO2meansmorephotosynthesisandthus growth; and ii) higher concentrations can reduce respiration, i.e., water loss from the “pores” in leaves, thereby increasing water use efficiency. There is still debate about the magnitude of the CO2 fertilization effect, so both estimateswithandwithoutitareconsideredhere(Cline2007). 62 Aswarmingcontinuesandwintersnowfallisreplacedbyrainfall,riverflowwillincreaseinthe winterbutdeclineinthespringandsummerwhenitismostneeded.Thisisbecausetherewill belittleaccumulatedsnow.Uptotheyear2050,waterfromthemeltingglacierswillincrease substantially:estimatesrangefromanincreaseofoneͲthird(Agaltseva2008)toatripling(Cruz etal.2007).Butafterthesefewdecades,theflowfromthediminishedglacierswillslowtothe pointwhereCentralAsianfarmswon’thaveenoughwaterforirrigation.Asaresult,theAralSea will likely shrink further, possibly reversing recent successes in restoring its ecosystems (Savoskuletal.2003). ThestateandsensitivitiesofECA’sagriculturetoday Foranyregionthecapacitytomanageclimatechangewilldependonitsdemonstratedabilityto addressabroadercategoryofproblemsrelatedtotheenvironmentandnationalresourcebase. The institutional and economic conditions of countries will shape the ways that countries respondtothechallengesposedbyshiftingweatherpatterns. Stakeholders engaged in adaptation assessments and planning will need to understand how land is used, which population groups are vulnerable, as well as the diversity of agricultural practices.Amapoftheregion’slandusecategoriesappearsinmap5.1,whileECA’sagricultural characteristicsappearintable5.4. Climatechangeiscomplicatedbyenvironmentalmanagementweaknesses Independentofclimatechange,environmentalproblemshavepresentedsubstantialchallenges to ECA countries, many of which lack management practices needed to protect the natural resource base on which critical economic activities depend (Sutton et al. 2007). Shortcomings are evident in soil fertility management, water use, pest control, nutrient conservation, forest health,andillegallogging.Projectingcurrentmanagementpracticesintoaneraofaccelerating climate change raises concerns not only about social and economic setbacks in farming and forestry, but also about ecosystem stresses including biodiversity loss, and damage to watershedsandrurallandscapes. Failure to address soil erosion is particularly worrisome, since climate change could make present problems worse through a pattern of alternating droughts and extreme rains. Turkey standsoutforitsprogressinmanagingsoilerosion,motivatedinpartbyconcreteestimatesof lostoutput,whichhelpedtomotivatestakeholders.Thishighlightstheimportanceofmonetary estimatestoempowerchampionsadvocatingforchange(Suttonetal.2007). Institutional and management weaknesses in ECA stem mainly from the wrenching transition fromcentrallyplanned,CommunistͲeragovernancemodels.Thoughthebleakestdecadeispast, alegacyofdistortedspecializationandrigid,resourceͲpoorinstitutionsremains.Theemphasis on inputs that characterized the region’s thinking on agriculture for decades—more fertilizer, more seeds, more irrigation—have left the sector unprepared to adapt to knowledgeͲbased farmingbettersuitedtoaworldofconstrainedresources. 63 Farms mostly in Central & Volga, N. Caucasus, some in Baltic, and in southernUrals andSouthSiberia.AboutoneͲthirdofagriculturallandin privatehands,therestpublic.Fewsubsistencefarms.Family,jointstock companyfarms,andpublicownedfarms;lowyields,poorlyrun. Russia Little privatization, with land ownership and distribution policies distortionary except in Kyrgyzstan, which is implementing privatization. Subsistence/familyfarms,inefficientlowͲproductivitycollectivefarms. CentralAsia 64 Notes:CentralEuropeisUkraine,Moldova,andRomania.Sources:WorldDevelopmentIndicators.Alametal.2005.FAO2006b.Csakietal.2006.WorldBank2005. Privatization progressing but incomplete. Small family farms in irrigated south but large farms in the north are betterͲrun, private joint stock companiesgrowingwheat. Mostly rainfed. Some irrigation in N Caucasus,southernmostpartofUralsand Siberia,smallamountinCentral&Volga. Moderatelydroughtproneinsouth. Armenia,Azerbaijan:20–30%ofcropland irrigated. Georgia: 40%. Highly droughtͲ prone, but rainfall more abundant in BlackSeacoastalareaofGeorgia. Moderate diversification. Cotton, rice, wheat, fruits Rainfed pasture. Just 10% irrigated. & vegetables. Forage, livestock, poultry in south. In HighlydroughtͲprone,especiallyinsouth. the north monoculture of wheat, some oil crops, pasture. Highly diversified. Cotton, rice, wheat, corn, large Kyrgyz, Turkmen, Uzbek mostly rainfed number of fruits, vegetables, livestock, poultry, pasture. 75–90% of region’s cropland sheep,pasture.Especiallyreliantonlivestock. irrigated. Extremely droughtͲprone, waterͲstressed. Little diversification except in N. Caucasus. Barley, rye, potatoes, fodder in north & west. Spring wheat innorth&east,somewinterwheatinsouth.Diverse fruits, vegetables, vineyards inVolga & N. Caucasus. SomericeinN.Caucasus.Livestock. Most productive arable land now under private ownership, but pasture Highly diversified. Fruits & vegetables, orchards still communal in places. Small, fragmented holdings. Subsistence and including apple, pears, cherries and some citrus, vineyards,dairy,sheep.Cereals,forage,corn,tea. familyfarmswithlowproductivity. Kazakhstan South Caucasus Farmsareprivatelyowned. Baltics Little diversification. Barley, rye, wheat, potatoes Entirelyrainfed,abundantprecipitation. (especially Belarus). Livestock, pork and poultry. OilseedinPoland.Limitedfruitsandvegetables. Current yields low relative to potential. Moldova especially poor and Moderatelydiversified.Wheat,barley,fodder,fruit& Mostly rainfed, around 10% irrigated, agricultureͲbased; moderate privatization but highly fragmented private vegetables,orchards,potatoes,oilseeds,sugarbeets. except in Romania 30%. Moderately holdings and some remaining inefficient collectives. Privatization also Livestock,thoughsmallersharethanrestofECA. droughtͲprone, Moldova more droughtͲ incomplete in Ukraine. In Romania, mix of small family and commercial prone. farms,allprivatelyowned. Central& Eastern Europe Northwestern part of Balkans entirely rainfed. Albania: 50% irrigated. Macedonia, Bulgaria: 15%. Turkey: 20%. DroughtͲprone, hot desiccating winds, intenserain,soilerosion. Highly diversified. Cereals, fruits, vegetables, orchards, vineyards, oilseeds, nuts, sugar beets; dairy,pork,sheep,poultry.InTurkey,cotton,olives, figsinadditiontoabove. Farms of Bulgaria now privatized; Croatian and Macedonian farms privately owned. Albania, Serbia and Montenegro mostly private but unclear ownership rights, and some inefficient collectives remain. Excessivefragmentationofholdingsthroughoutregionlimitsefficiency.In Turkey,farmsaresmallandprivatelyowned. SouthͲ eastern Europeand Turkey CroplandIrrigationandWaterSupply MajorCrops&Products Distribution,Ownership,andProductivityofAgriculturalLand Region TABLE5.4CHARACTERISTICSOFCURRENTAGRICULTURALPRODUCTIONINECA BuildingthecapacitytoadaptwillbecrucialforECA’sAgriculturalKnowledgeandInformation Systems, which were designed to assist large, publicͲsector, collective farms in meeting preͲ determined production targets for crops and livestock commodities. These systems remain illͲ suited for meeting the needs of smaller, private farmers who constitute a large share of the sectortoday. Years of overͲspecialized production have also taken a toll. Under the command economy, collective farms, subͲnational regions, and even entire countries specialized in an often small numberofgoodsthatmayormaynothavebeenappropriatetothelocalnaturalandhuman resource endowment. One of the most damaging examples was the concentration of cotton productioninCentralAsia,whichledtooverexploitationofwaterforirrigation,heldinplaceby aninstitutionalframeworkresistanttodiversification. In the first decade of the region’s transition to markets, agriculture, like most sectors, experienced major upheavals, with sometime severe declines in output, and a drying up of governmentfinancialsupport(WorldBank2007).Thenewprivatefarmerslackedexperiencein modernmanagementorinoperatinginamarketeconomy.Theyhadlittletrainingsupportfrom institutions that had either collapsed or remained geared towards the old system. Knowledge gaps combined with a shortage of inputs, equipment, storage facilities, and market structures continuetoweakenthefarmsectorthroughouttheregion(SwinnenandRozelle2006). Theagriculturalsectorisgraduallyadjustingtopolicyreforms.Farmeconomieshavebegunto recover,withharvestsandheadsoflivestockincreasingtoward1990levels.Privateagriculture based on market principles is now predominant. But serious problems persist in the sector’s institutional foundations. Environmental laws protecting agriculture, forestry, and biodiversity are weakly or unevenly enforced (Sutton et al. 2007). Research, education, training, and technologytransfersystemssufferfromneglect. Turkey stands out, since it isn’t emerging from CommunistͲera central planning. Private farms have always dominated agriculture in Turkey, though the small farm size limits the country’s productivity gains. There is diversity in farm production within the country, and agriculture in western Turkey has generally been more progressive and exportͲoriented than in eastern Turkey. The research, extension, training, information, and technology transfer institutions function relatively well, and crossͲministry cooperation on environmental issues is promising (Suttonetal.2007). ThecapacitytomonitortheimpactofclimatechangehaslargelybrokendowninRussiaaswell as in other Eastern European and Central Asian countries, along with services for monitoring baselineweatherconditions(seechapter7).Theabilitytotrackpests,watchforforestfires,and providewarningofflashfloodsandotherextremeeventswillincreasetherisksforfarmsand forestersasclimatechangeplaysoutovertime.Becausefirespassuncheckedacrossborders, they can spark transboundary political disagreements in addition to causing physical and economic damages. The fires of the summer of 2007 in Southeastern Europe offer a sobering exampleofthehuman,economic,andpoliticalcostofinsufficientcooperationandcoordinated planningatthenationalandinternationallevel. 65 Farmtypeandadaptivecapacity Different types of farms have varying advantages and disadvantages in adapting to the challengesposedbyclimatechange. Broadly, the ability to adapt to a changing climate depends on the elements of a functioning agriculturalsystem:(i)timelyclimateinformationandweatherforecasts,andtheskillsneeded for their interpretation; (ii) locally relevant agricultural research in techniques and crop varieties;(iii)traininginnewtechnologiesandknowledgeͲbasedfarmingpractices;(iv)private enterprises, as well as public or cooperative organizations for inputs, including seeds and machinery, and affordable finance for such inputs; (v) infrastructure for water storage and irrigation; (vi) physical infrastructure and logistical support for storing, transporting, and distributing farm outputs; and (vii) strong linkages with local, national, and international marketsforagriculturalgoods. Different types of farms have different levels of access to these critical elements. Although smallerprivatefarmswouldseemtobethemostnimbleinrespondingtochangingconditions, largerfarmsgenerallywouldhavesuperiorclimateinformationandexpandedaccesstocredit; and governmentͲowned farms would have better access to state sources of information and finance. All told, diversified operations are better positioned to respond to stresses that might hit one setofcropsoronetypeofactivity.Anyfarmsalreadydealingwithstressedwatersupplieswill facenewhardshipsinthemoreuncertainandextremetimesthatmaylieahead. Corporate farms in Bulgaria, Romania, Russia, and northern Kazakhstan represent the largest type of farm and have the greatest physical and human capital resources. Next are the cooperative or group farms, generally managed by a few individuals using the pooled land of manysmallholders,whomayalsobehiredtoprovidefarmlabor.Whilethesefarmscanexploit economiesofscale,theirmanagerstypicallylackthetechnologicalknowͲhowandfinancingof thecorporatefarms,makingthemmorevulnerable. The largest and fastest growing group is the small, family farm, which produces for the commercial market but at a small scale. These farms make up the bulk of agricultural income and output in the Balkans, Turkey, the Caucasus, and Central Asia, and remain important in CentralandEasternEuropeandRussia.Thesefarmswilllikelycontinuetoserveastheengineof theruraleconomyinthecomingdecades,buttheymaybehighlyvulnerabletoclimatechange giventheirsize,thefarmers’limitedtechnicalknowledge,andpooraccesstopublicandprivate informationandfinancialservices. Smallfarmersinparticularwillfaceclimatechangeasyetonemorestresscompoundingmany others, including fragmented holdings, marginal land, poor environmental management, illͲ defined property rights, increasing demand for standardized and safetyͲcontrolled products, declining health and vitality of the rural poor (in ECA, due to aging and outmigration of the young),protectionistfoodpoliciesabroad,andunpredictableworldfoodprices(Easterlingetal. 2007). ThefinaltypeoffarmisthelowͲproductivitysubsistencefarm,withagingproprietorssupported in part by urban remittances, which have little resilience to shocks. The transition out of 66 agriculturewillnotbeeasyforthesepeoplesincetheyoftenhavenootheroptions.Safetynets willbeneededtoassistthem. Potentialclimatechangewinnersfacetheirownchallenges Potentialwinnerswillnotbenefitautomaticallywithoutmakingsubstantialinvestmentsinthe future. They must take significant actions if they are to reap the potential benefits of climate change. Producers and policymakers in northern latitudes have begun to anticipate longer growingseasonsandimprovedfarmoutputs. However,anycomplacencywouldbemisplaced,sinceadaptationinvestmentswillberequired totakeadvantageofanypotentialgains(Parry,Rosenzweig,andLivermore2005).Thepotential winnersneedtobeawareofthespecificchangesprojectedandhowbesttotakeadvantageof them. Moreover, most countries will have a mix of losing and winning producers, and will requireadaptationstrategiesacrosssectorsandsubͲregions. Some new challenges will emerge as producers take advantage of new farming opportunities. Northern areas will see intense competition between forestry and agriculture for land. The relativefeasibilityoffieldcrops,treecrops,andlivestockmayfurtheralterlandͲusepatterns.As seen in the case of the Aral Sea, overexploitation of water resources for irrigation, as well as overuse and resulting runoff of polluting fertilizers, can have devastating consequences on fisheriesandotherwaterͲdependentactivities. Thequestionofwhether ECA’spotentialwinnerscanrealizethe benefitsoffavorableclimatic conditionshasimportantimplicationsnotjustforthecountriesthemselves,butforworldfood marketsingeneral.Inparticular,Kazakhstan,Russia,andUkraine(KRU),itisoftensaid,havethe mostunrealizedgrainproductionpotential,andtheycouldbenefitfromclimatechange(atleast intheirnorthernregions). But a recent report notes that, since the breakup of the Soviet Union, these three countries combined have removed 23 million hectares of arable land from production, the largest such withdrawalinrecentworldhistory(FAO&EBRD2008).Almost90percentofthislandhadbeen usedtoproducegrain. Bringing large parts of this land back into production could increase world grain supplies and helpsolvethecurrentglobalfoodpricescrisis.Meanwhile,anumberofglobalstudies(e.g.Cline 2007) project a substantial increase in agricultural output for the KRU countries as a result of climatechange(seethecaveatsinthediscussionoftable5.3above).Theseprojectedincreases contributetotherelativelysanguineattitudeofmanytowardsclimatechange’simpactonworld foodsupplies. The key question is whether the potential ECA winners will be able to provide the supply responsethatmanyexpectofthem.Therearetwopossibilitiesforincreasingproductioninthe KRU countries: (i) raise yields on currently cultivated agricultural land; and/or (ii) expand the areas under cultivation. Because the latter would require large investments in landͲclearing, production,marketing,andtransportinfrastructure,movestoimproveproductivityofexisting farmsaremoreattractive. 67 Productivity depends not only on the climate conditions, but also on technology, investment, support services, and crop management. Analysis has shown that the current gap between potentialandactualyieldsinCentralandEasternEuropeandtheEuropeanpartsoftheformer SovietUnionaresignificantlyhigherthananypotentialgainsfromclimatechange.Inparticular, thecurrentyieldgapfortheformerSovietcountriesinEurope(includingUkraineandEuropean Russia) is 4.5 times higher than the potential increase in production from climate change by 2050(OlesenandBindi2002). Whileworldgrainyieldshavebeenrisingonaveragebyabout1.5percentperyearsince1991, yieldsinUkraineandKazakhstanhavefallen,andRussia’shaveincreasedonlyslightly.Yieldsin allthreecountriesarefarlowerthanthoseinWesternEuropeortheUS.ThefactthattheKRU countries and other ECA countries have not been able to take advantage of this potential for productivity gains suggests fundamental weaknesses in the agricultural sectors of these countries, which does not bode well for their capacity to adapt to and benefit from climate change. Indeed, the key challenge would be to close the existing productivity gap rather than expectingtoridetheclimatechangetrendstoaneweraofprosperity. Forests show a similar pattern to agriculture. Estimates indicate that the largest share of potential forest stock increases in Europe would be due to improved management (60–80%) rather than climate change (10–30%) (Easterling et al. 2007). Improved management requires strongforestinstitutions,whichareoftenlackinginthetransitioncountries. Adaptationintheproductiveenvironment Adaptingtheproductiveenvironmenttochallengesofclimatechangewilldemandtechnologies to monitor and measure conditions in the productive environment, institutions to facilitate change, and policies that encourage reform. Managers will need to show resilience and flexibility if they are going to be less vulnerable to changing weather patterns. A number of sustainable, appropriately chosen adaptation initiatives would yield measurable benefits regardless of climate factors. Policies and technologies for more efficient distribution and onͲ farmuseofwatermakeeconomicsensebyloweringcoststogovernmentintheformofwater subsidiesand make adaptation senseby equipping farmers to cope with reduced water availabilityaswellasdroughtevents. But adaptation is a national effort not limited to individual farmers or foresters. For example, increased waterͲuse efficiency will not be implemented without adoption of irrigation technologies andmanagementstrategies.But institutional componentsare equallyimportant: waterͲuserassociationsmightaidinknowledgesharing,andadvisoryservicescanequipfarmers withwasteͲreducingtechniques.Atthepolicylevel,governmentscaninvestinadvisoryservices andawarenesscampaigns,whilesettingwater pricestogive usersincentives toreducewaste andtherebylowergovernmentspendingonsubsidies. Given the uncertainty about the exact spatial and temporal distribution of climate changes, a cautious approach is to pursue adaptations that would be worthwhile even without climate change. Following are examples from areas where adaptation measures hold the greatest promise,independentofclimatechangescenarios: 68 Technology and management (see annex table 5.1): Conservation tillage for maintaining moisturelevels;reducingfossilfuelusefromfieldoperations,andreducingCO2emissionsfrom the soil; use of organic matter to protect field surfaces and help preserve moisture; diversification of crops to reduce vulnerability; adoption of droughtͲ, floodͲ, heatͲ, and pestͲ resistant cultivars; modern planting and cropͲrotation practices; use of physical barriers to protectplantsandsoilsfromerosionandstormdamage;integratedpestmanagement(IPM),in conjunction with similarly knowledgeͲbased weed control strategies; capacity for knowledgeͲ based farming; improved grass and legume varieties for livestock; modern fire management techniquesforforests. Institutional change (see annex table 5.2): Support for institutions offers countries winͲwin opportunities for reducing vulnerability to climate risk and promoting development. Key institutions include: hydromet centers, advisory services, irrigation directorates, agricultural research services, veterinary institutions, producer associations, waterͲuser associations, agroͲ processingfacilities,andfinancialinstitutions. Policy (see annex table 5.3): NonͲdistorting pricing for water and commodities; financial incentives to adopt technological innovations; access to modern inputs; reformed farm subsidies; risk insurance; tax incentives for private investments; modern land markets; and socialsafetynets. 69 Landusemanagement Mixedfarmingsystems(crops,livestock,andtrees) Conservationtillage Nutrientmanagementanduseoforganicmatter Watershedmanagement Waterharvestingtechniques,storage,reductionofrunoff Drainagesystems Rehabilitationandmodernizationofirrigationinfrastructure,canals Developnewirrigationfacilities Useofmarginalwater Damsforwaterstorage,floodcontrol Supplementalirrigation Irrigationatcriticalstagesofcropgrowth Sprinklerirrigation Dripirrigation FurrowandflatͲbedirrigation Drought x x x x x x x x x x x x x x x x x x x x x x Needforwateruse efficiency(irrigated) x x x x x x x x x x x Landdegradation,soil infertility,erosion x x x x x x x x Heatstress x x x x x x x x x x x Pestanddiseasecontrol Climate/weather/agriculturalphenomena x x x x x x Excessrain,flooding,storms Technologicaladaptationmeasuresandinvestments Needforsoilmoisture conservation(rainͲfed) ANNEXTABLE5.1TECHNOLOGICALADAPTATIONPRACTICESANDINVESTMENTSFORVARIOUSCLIMATE,WEATHERANDAGRICULTURALPHENOMENA Milderwinters,longer growingseason x x x x x 70 x x x x x Emissionsmitigation, carbonsequestration Cropdiversification UsewaterͲefficientcrops,varieties HeatͲanddroughtͲresistantcrops/varieties/hybrids Switchtocrops,varietiesappropriatetotemp,precipitation Croprotation(sequencing) Switchfromfieldtotreecrops(agroͲforestry) Timingofoperations(planting,inputs,irrigation,harvest) Stripcropping,contourbundingandfarming Vegetativebarriers,snowfences,windbreaks Rangelandrehabilitationandmanagement Pasturemanagement(rotationalgrazing,etc)andimprovement Supplementalfeed Fodderbanks Wateringpoints Livestockmanagement(includinganimalbreedchoice) Firemanagementforforestandbrushfires Responsefarming(usingseasonalforecasts) IntegratedPestManagement Source:authors;Padgham(forthcoming). Drought x x x x x x x x x x x x x x x x Needforsoilmoisture conservation(rainͲfed) x x x x x x x x x Needforwateruse efficiency(irrigated) x x x x x x x x Landdegradation,soil infertility,erosion x x x x x x x x x x x x x x Heatstress x x x x x x x x x x x x x x x x x x x x x Pestanddiseasecontrol Climate/weather/agriculturalphenomena x x x x x x x Excessrain,flooding,storms Technologicaladaptationmeasuresandinvestments Milderwinters,longer growingseason x x x x x x x x x x x 71 x x x x x x Emissionsmitigation, carbonsequestration ANNEXTABLE5.2INSTITUTIONSCRITICALFORADAPTATION Institution Hydromet& Forecasting Centers ImportanceforAdaptation StatusinECA NATIONALANDLOCALGOVERNMENTS Essentialinformationforplanning, USSRwasservedwell,hassincecrumbled. understandingchangingclimate,providing ImprovinginEuropeanRussiabutstill farmerswithlongͲterm,seasonal,anddaily unsatisfactoryinCentralAsiaandtherest weatherforecastingforknowledgeͲbased ofECA.Poorcapacityforlocalmonitoring, localdatainterpretation,andforecasting. responsefarming. AdvisoryServices (incl.Agricultural Extension) i.AgronomicInfo ii.Financial Advice iii.MarketInfo i.Interprethydrometoutputforpractical advicetofarmers;conveyinformationon trendsofclimatechangeandrisk; recommendandtraininnewandoffͲtheͲ shelftechnologiesandinnew/different locallyͲadaptedcropsandvarieties; demonstratenewfarmingpractices. ii.Provideinformationonsourcesoffinance foradaptiveinvestments. iii.Provideinformationonmarketpricesand channelsofdistributionforcropsand livestock. Keytoensurethatservicesreachsmalland mediumfamilyfarms. Generallypoorstateofbothpublicand privatesectoradvisoryservices.Challenge toreachsmallfarmers.Lackofcapacityfor interpretationofclimateforecasts, interpretationofprobabilisticclimate data,andthuscommunicationof probabilisticandnotdeterministic forecasts.InTurkey,advisoryservicesare betterdevelopedbutlackcapacityto effectivelyadvisefarmersinan environmentofincreasedchallenges. Irrigation Directorates Maintain,rehabilitate,expand,andreplace oldandnewirrigationfacilities,whichwillbe moreimportantinwaterͲstressedareas. Intermediarybetweenmanagersofwater resourcesandfarmusers. Forestry Departments/ Agencies Maintainhealthofforestsandrespondto pestsandrisksoffire.Observechangesin forestecosystemsinresponsetochanging climate.Participateinplanningrelatedto forestͲagriculturelandtradeͲoffs. InmuchofECA,oftenamongthebestͲ functioningofthoseinstitutionsthatwill berelevantforclimateadaptation. Agricultural Research Institutes BringknowledgeoflocallyͲrelevantneedsto researchnetworksfromlocaltointernational level,developvarietiesandtechnologies suitableforchangingclimateandlocal endowments. AfterthedisintegrationoftheSoviet Union,researchsystemscollapsedandare noteffectiveinmeetingthecurrent demands.InTurkey,thesituationis better. Agricultural Educationat Vocational Schools, Technical Colleges Importantconduitforinformationabout implicationsofclimatechangeforfarmers andmanagers,includingadaptation measuresandtechnologiesandguidanceon howandwhentoimplementthem.Keyin movetowardsmoreknowledgeͲbasedrather thaninputͲbasedfarming. QualityControl, Phytosanitary,& Veterinary Services Providestandardsinformationand enforcementconsistentwithnationaland internationalregulation,monitorandcontrol livestockhealthandprovidetimely informationondiseaserisks. Stronginsomecountries,inothersnotup tochallengeofglobalfoodmarket. 72 Institution Producer Associations& Farmer Organizations ImportanceforAdaptation CIVILSOCIETY Shareinformationaboutoutcomesand challengesofadaptation,serveaslocusfor absorbingnewinformationfromand communicatingfarmerconcernsto governmentbodiesandprivateenterprises, allowsharedinvestmentinnewmachinery bysmallfarmers. StatusinECA Producerassociationsandfarmer organizationsarestartingtogrowand theireffectivenessvariesacrosscountries. Thereispotentialforfurtherexpansionto moreareasandfordeepeningofactivities. WaterUser Associations Encouragemoresustainablewateruse. Relativelyrecentinstitution,notfully developed,justbeginningtofunction. NGOs Provideinformation,funding,and institutionalsupportatsmallscaleforpilot adaptationeffortsbyfarmers,offer microcredittoenableadoption,share knowledgeoflocalexperiences,advocate farmers’concerns. Moderatepresence,increasinginECA clientcountries.Facetheusualchallenges, e.g.interventionsnotsustainedafter projectsend,struggletoreachthe neediest,lackofcoordinationwithother institutions. Private&Public SeedCompanies &Nurseries PRIVATEENTEPRISES Ensureproductionandavailabilityof InEurope,availablebutcurrently seeds/seedlingsofappropriatevarieties,e.g., inadequate.Limitedpresence,efficacyin withimproveddroughtͲandpestͲresistance, Caucasus,CentralAsia.GoodinTurkey. totakeadvantageofagriculturalresearch anddevelopmentandfacilitateadoption. GrainStorage andDrying Facilities Willbeneededincurrentlyunservednewly cultivatedareas,andareaswithintense rainfallorheatwhichcauserot,spoilage. Notpresentorinadequateinareasthat willneedthemascropping,livestock zonesshift,andasrainfallincreasesduring cerealharvestingtimeintheBaltics, CentralEurope,Russia,northern Kazakhstan. Agroprocessing Facilities Offerprocessingoflivestockproductsin expandedpastureareas,processingof horticulturecropsinnewareas. Notpresentorinadequateinareasthat willneedthemascropping,livestock zonesshiftnorthwards. Marketing Enterprises Exploiteconomiesofscalebybuyingproduce Variableandwithscopeforimprovement. GenerallystrongerinTurkeyandEurope offamilyfarmsandsellingatmarket, mitigatesrisktofarmersofadopting thantheCaucasus,CentralAsia. unfamiliarcropsorvarietieswithuncertain demandlocally. FinancialServices i.Banks ii.Microloans iii.Agricultural Insurance i.Providenecessaryfinancefor implementationofadaptations.ii.Reachout tosmallfarmerswithlimitedaccessto formalbanks.iii.Mitigaterisksofcropfailure fromunpredictableweather,unproven adaptations,marketuncertainties. Pooraccessofsmallfarmerstobanks. Limitedpresence,effectivenessof microcreditorganizations.WeatherͲ indexedinsurancedoesnotexistinmost ofECAclientcountries. 73 ANNEXTABLE5.3POLICIESCRITICALFORADAPTATION Policy NonͲDistortionaryWater Pricing ImportanceforClimateChangeAdaptationandimplementationchallenges Reducesubsidiestoincreaseincentivesforbettermanagementofwaterresources,allocationof water,andefficiencyofitsuse.Difficultbecauseremovingsubsidiesoftenmeetspolitical resistance. NonͲDistortionary Reducedistortionsinmarketsforcerealsandoilseeds,includingsettingpricecaps,ortaxingor CommodityMarket otherwiserestrictingexports.Lettingpricespassthroughwillincreaseincentivesforproducersto Policies investandexpandproductionofthesecropsovertime.Exportrestrictionsbecomecontagious, significantlyreducingagriculturaltradeandtheabilityofworldfoodmarketstorespondtoclimate change.Also,managestategrainreservestransparentlyandeffectivelytoensuresupplyduring shortͲtermshocks,nottokeeppriceslow. FinancialIncentivesfor Providetaxincentivesfor,e.g.,farmers’purchaseofmachineryrequiredforconservationtillage, AdoptionofTechnological plantingofdroughtͲresistantseedlings.Providefinancing,coordinationforhiringofmachinesand laborforreforestationprojects. Adaptations AccesstoModernInputs Removerestrictionsonimportsofmodernseedsandseedlingstoallowfarmersaccesstomodern varieties(e.g.,withincreaseddroughtresistanceorlongermaturation). Thoseinstitutionshavebeenunderfundedforalongtime,somegovernmentspayattentiontoit InvestinSupport Institutions(identifiedin andsomedon’t,somehavetheresourcestoinvestthereandsomedon’t. previoustable) ReformFarmSubsidies Subsidiestargetedatproductionofspecificcropsmaybecounterproductiveascomparative advantageschange.Avoidtryingto“pickwinners,”e.g.,subsidiesforcerealsratherthanthefruits andvegetableswhichmaybecomemoreappropriateduetowarming.Recurrentproduction subsidiesalsoreducescopeforinvestmentsinpublicservicesandfarminvestmentsubsidies. PromotePrivate Promoteinvestmentsbytheprivatesectorinnewtechnologiesbyprovidingtaxincentives, matchinggrants,technicalassistance,etc.Notonlyforprimaryproduction,butalsoforinputs, Investments processing,logistics,warehousing,andotherrelatedsectors. RiskInsurance Exploreopportunitiesfordevelopingsystemofweatherindexinsurance(asopposedtotraditional multiͲperilcropinsurance).Forsmallercountriesespecially,spreadriskacrosscountries. ImproveLandMarkets Ensurelandtenuresecurity,improvelandregistrationandcadastresystems,andreducemarket transactioncosts.Thiswillhelptoincreasetheflexibilityoffarmers,reducefragmentation, increaseaccesstofinance,andencourageinvestment. CalculateEconomicCosts Calculatetheeconomiccostsandbenefitsofpolicychangesandinvestmentsdecisionsas rigorouslyaspossibletoensurethemostefficientandeffectiveuseofpublicresources.Thiswill andBenefits oftenrequirecapacitybuilding. EncourageLivelihood Insomeareas,andforsomeruralresidents,agricultureandforestrymaybecomeunviable. Diversification ProvidetrainingandfinancialsupporttoencouragethedevelopmentofnonͲfarmrural employmentorskillsforurbanemployment. StrengthenSocialSafety Providetargetedincomesupportforpoorandvulnerablesegmentsofthepopulationthatmay Nets havedifficultyaffordingfood,whomayliveinareaswhereagriculturebecomesunviable,maynot beabletoeasilychangelivelihoods(elderly,sick). 74